PRODUCT AS AN ELEMENT OF MARKETING MIX

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PRODUCT AS AN ELEMENT
OF MARKETING MIX
WHAT IS A PRODUCT
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IT IS AN OVERALL CONCEPT OF OBJECTS OR PROCESSES WHICH
PROVIDE SOME VALUE TO THE CUSTOMER
CUSTOMERS ARE IN FACT BUYING SPECIFIC BENEFITS AND VALUE
FROM THE TOTAL OFFERING. THIS TOTAL OFFERING IS TERMED AS
AN ‘OFFER’.
OFFER IS A CORE IN THE CENTRE- SURROUNDED BY SERIES OF
BOTH TANGIBLE OR INTANGIBLE FEATURES,ATTRIBUTES AND
BENEFITS. THESE INCLUDE PACKAGING, ADVERTISING, FINANCING,
AVAILABILITY, ADVICE, WARRANTY.
THE OFFER CAN BE VIWED AT SEVERAL LEVELS
1. CORE-(GENERIC)
2. EXPECTED PRODUCT (MINIMUM PURCHASE CONDITIONS)
3. THE AUGMENTED PRODUCT (USEFUL IN DIFFERENTIATION)
4. THE POTENTIAL PRODUCT.(REDEFINITION OF PRODUCT)
BRANDING AND DIFFEERENTIATION
• THE LEVELS BEYOND CORE REPRESENTS
OPPORTUNITIES TO PRODUCE ADDED VALUE TO
CUSTOMERS
• VALUE IS ADDED THROUGH THE CREATION OF
STRONG BRAND..BRANDING CAN HELP IN
ASSURING THE CUSTOMERS OF UNIFORM
SERVICE QUALITY.
• LEADING BRANDS IN SERVICES– HDFC, SBI, JET
AIRWAYS, YAHOO MAIL, GOOGLE,LIC, CNBC,RUBY
HALL CLINIC, TAJ GROUP OF HOTELS, IIMS, IITS,.
DEVELOPING NEW SERVICE PRODUCTS
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IN ANY SERVICE PRODUCT MARKETING RESEARCH CAN BE USED
TO KNOW CUSTOMERS EXPECTATINS.
INSTEAD OF RELYING ON GUT FEELING-MARKET SURVEY CAN
PROVIDE VALUABLE INPUTS FOR SERVICE DESIGN –MORE
PARTICULARLY THE FEATURES CONSUMERS EXPECT. THIS CAN
REMOVE THE BLIND SPOTS.
THERE CAN BE CUSTOMERS DRIVEN SERVICES DESIGNS AND
STANDARDS AS WELL AS COMPANY PERCEPTION OF CONSUMER
EXPECTATIONS AND STANDARDS.
FREQUENTLY A GOOD SERVICE IDEA FAILS BECAUSE OF
DEVELOPMENT, DESIGN AND SPECIFICATION FLAWS.
BECAUSE SERVICES ARE PRODUCED AND CONSUMED
SIMULTANEOUSLY AND OFTEN INVOLVE INTERACTION BETWEEN
EMPLOYEE AND CUSTOMERS – NEW SEERVICE PRODUCT
DEVELOPMENT SHOULD INVOLVE BOTH.
TYPES OF NEW SERVICES
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ALL NEW SERVICES ARE NOT NEW IN THE SAME DEGREE
• TYPES—
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MAJOR AND RADICAL INNOVATIONS—FIRST TV BROADCAST
START-UP NEW SERVICES FOR THE MARKET ALREADY
SERVED.THAT MEET THE SAME GENERIC NEED. (SLEEPER COACH)
NEW SERVICES FOR CURRENTLY SERVED MARKET –SERVICES NOT
PREVIOUSLY AVAILABLE – E-BANKING, ATM.
SERVICE LINE EXTENSION– SHARE BROKER OFFEERING DEMAT
SERVICE.
SERVICE IMPROVEMENT – MOST COMMON TYPE– CHANGES IN THE
FEATURES OF THE SERVICES—FASTER DELIVERY, EXTENDED
HOURS, ADDED AMENITIES IN THE HOTEL ROOM.
STYLE CHANGES –COLOUR SCHEME OF HOTEL, CROCKERY,
WAITERS UNIFORM, FURNITURE...
SERVICE DESIGN – STEPS
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A PERFECT SERVICE DESIGN AT A GIVEN POINT OF TIME MAY GET
OUTDATED AND UNSATISFACTORY WITH PASSAGE OF TIME
THE ULTIMATE TEST OF SERVICE DESIGN IS CUSTOMER
SATISFACTION, MEASURED ON REGULAR BASIS.
STAGES—
1. DEFINING DESIGN ATTRIBUTES.
2. SETTING DESIGN PERFORMANCE STANDARDS.
3. GENERATING AND EVALUATING DESIGN CONCEPTS.
4. DEVELOPING DESIGN DETAILS
5. IMPLEMENTING THE DESIGN
6. MEASURING PERFORMANCE
7. ASSESSING SATISFACTION
8. IMPROVING PERFORMANCE.
• DESIGN DEVELOPMENT IS A CONTINUOUS
PROCESS.
QUALITY FUNCTION DEPLOYMENT
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A SYSTEM OF TRANSLATING CUSTOMER REQUIREMENTS INTO
APPROPRIATE COMPANY REQUIREMENTS AT EVERY STAGE—
DESIGN,DEVELOPMENT,INSTALLATION,DISTRIBUTION.
ELEMENTS—
1. CUSTOMERS EXPECTATIONS
2. IMPORTANCE OF EXPECTATIONS
3. CONTROLLABLE ELEMENTS OF SERVICE
4. RELATIONS AMONG ELEMENTS
5. ASSOCIATION BETWEEN EXPECTATIONS AND SERVICE ELEMENT
6. DVERALL IMPORTANCE OF SERVICE ELEMENTS FOR MEEETING
CUSTOMER EXPECTATIONS
• ZONE OF TOLERANCE– DESIRED SEERVICE/ADEQUATE
SERVICE.

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